November 2012 Consumer and Producer Price Indices

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The seasonally adjusted Consumer Price Index declined 0.3 percent in November. Over the last 12 months, the all-items index increased 1.8 percent before seasonal adjustment.

The gasoline index fell 7.4 percent in November; this decrease more than offset increases in other indexes, resulting in the decline in the seasonally adjusted all items index. The energy index fell 4.1 percent in November despite increases in the indexes for natural gas and electricity. The food index rose 0.2 percent with the food at home index increasing 0.3 percent.

The index for all items less food and energy increased 0.1 percent in November after a 0.2 percent increase in October. The indexes for shelter, household furnishings and operations, airline fares, recreation, new vehicles, and medical care all increased in November, while the indexes for apparel and used cars and trucks declined.

The all items index increased 1.8 percent over the last 12 months, a decline from the 2.2 percent figure in October. The index for all items less food and energy rose 1.9 percent over the last 12 months, slightly lower than the October figure of 2.0 percent. The food index has risen 1.8 percent over the last 12 months, and the energy index has risen 0.3 percent.

The seasonally adjusted Producer Price Index for finished goods (PPI) fell 0.8 percent in November. Prices for finished goods decreased 0.2 percent in October and rose 1.1 percent in September. Prices received by manufacturers of intermediate goods declined 1.2 percent in November, and the crude goods index edged up 0.1 percent. On an unadjusted basis, the finished goods index advanced 1.5 percent for the 12 months ended November 2012, the smallest increase since a 0.5 percent rise for the 12 months ended July 2012.
 

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Prices received for intermediate goods also declined relative to a year earlier (-0.3 percent); so, too, did the cost of wood fiber (-1.5 percent); the other categories rose on a year-over-year basis -- especially prices for softwood lumber (+13.7 percent).
 

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.